Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/194290
Authors: 
Öllinger, Michael
Ostermair, Christoph
Sell, Friedrich L.
Year of Publication: 
2019
Series/Report no.: 
Volkswirtschaftliche Diskussionsbeiträge 2019,2
Abstract: 
In this short communication, it is recalled that unions traditionally follow a policy of pushing higher average wages and at the same time propose a compression of the structure of wages and salaries, which follows the theory of some sort of equity. Considering a steep downfall of union density in many, if not all, OECD countries, the actual good condition for minimum wage policy comes as no surprise. Despite the fact that unions do not like the intervention of labor market policy at the cost of tariff autonomy, it can be shown that minimum wages are capable of serving both the above-discussed objectives of unions, but only the average wage rate cannot be increased. In addition, the distribution of wages will decrease, ceteris paribus. However, it is not clear whether minimum wages will be able to increase the overall wage quota in the economy. Here, this fact is theoretically explored in depth.
Subjects: 
strategy of unions
wage dispersion
average and minimum wages
wage quota
JEL: 
J51
J38
J41
J58
Document Type: 
Working Paper

Files in This Item:
File
Size
347.64 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.